Hedge funds’ bullish bets on gold jump to four-year high
Hedge funds and other large speculators boosted their net-long position in gold.
Gold is so out of favour these days that investors will probably miss any obvious good news, says legendary newsletter writer Richard Russell in King World News.
Russell pointed to gold miners’ relative strength index (RSI) noting that it was in the oversold area last week.
What’s significant is that all these gold items saw RSI in the oversold (below 30) area, and all surged higher on Friday. Also, anti-precious metals sentiment was so black-bearish last week that I thought, along with RSI below 30, that we might, at last, have struck a true bottom in the precious metals. Of course, it’s always possible that after Friday’s explosion, the gold miners may back off this week and test last week’s lows.
Gold is so hated that it could rally over $1500, and nobody would notice it. Sentiment against gold is so bearish that I thought gold could have struck a capitulation low last week. Another bearish piece in today’s issue of USA Today.
Talk about rising on a stairway of hatred, you’re seeing it now in gold!
Creative Commons image by Brandon Laney
